Walberg votes against Bush-backed housing bill

A sweeping housing bill passed the House yesterday that will aide people across the country trying to keep their homes, it also includes a $7,500 tax credit for first-time home buyers and allow the Treasury department to extend a line of credit to mortgage giants Fannie Mae and Freddie Mac.

Walberg says it will put taxpayers on the hook for $300 billion in speculative securities, while adding a new tax on mortgages. President Bush had originally threatened to veto the bill, but before the vote, he agreed he would sign it.

Recently, I spoke with Walberg and the two Democratic candidates -- Sharon Renier and Mark Schauer -- for the 7th Congressional District seat he occupies, and they all had different takes on the issue.

Walberg agreed with Republican House leadership that the issue should not be rushed through, and wanted to take time to have hearings on the bill.

Schauer said he supported the effort, but wouldn't call it a "bailout"

"I think (Congress) should be helping to make sure Fannie Mae and Freddie Mac are solvent and continue to provide an important underwriting function in the mortgage industry," Schauer said. "They are critically important to regaining stability in the housing market."

Walberg said more time was needed to study the matter, and even though the administration proposed the bailout, he had concerns.

"I'm not a rubber stamp for the President," Walberg said. "If it's just jammed down our throats, I'd be very apprehensive of voting for something like that."

But he was more concerned that the Democrats would package the bailout with other things that he couldn't accept.

"I'm fearful that a lot of stuff is going to be rolled into this, including tax increases and I can't support that," Walberg said.

Walberg said he wasn't sure what would happen to Fannie and Freddie if Congress didn't step in.

"I don't know if letting it go would be a problem," he said.

Renier said she would not support a bailout for the mortgage giants.

"Let em go," she said. "Let the American taxpayer really find out what's going on with their country and how it's bankrupt."

The following is Walberg's full statement on his opposition to the bill, which was released last night.

"Today the House voted to revise the great American tradition that hard work, responsible investment and diligent savings leads to home ownership, and sadly, the President stands by ready to support this flawed legislation," Walberg said. "In Michigan, we know firsthand how our struggling economy has frustrated people who've had dreams of home ownership and put many folks in difficult situations. Rather than allow the government to reward risky investments, Congress should work on policies that promote home ownership and keep alive the dream of owning a home for all Americans. Michigan taxpayers cannot afford to pay for the irresponsibility and blatant recklessness of mortgage servicers and speculators, and this legislation forces hard working families to backup $300 billion in risky mortgage securities and adds a new tax on mortgages, which will only slow any economic recovery and job growth. The best way out of the current housing crisis is to create more good-paying jobs which will help all Americans purchase homes."

Schauer and Renier have not released any formal statements following the vote.